3 Ways to LEGALLY Raise Capital From Non-Accredited Investors
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- เผยแพร่เมื่อ 5 มิ.ย. 2024
- I often get asked: How can I legally raise money from non-accredited investors?
In this video, seasoned securities attorney Darin Mangum ( www.linkedin.com/in/darinmangum ) discuss 3 LEGAL ways to raise capital from non-accredited investors: Rule 506(b), Regulation Crowdfunding, and Regulation A+.
If you are looking for a custom crafted private placement memorandum or would like your PPM to be reviewed, please feel free to contact me directly as listed below.
For over 24 years, boutique securities law firm Mangum & Associates has been helping clients navigate securities laws. As a specialty law firm, we specialize in working with those raising capital by preparing the right disclosure documents and filing for the necessary exemptions.
We work on a flat-rate basis in most scenarios and offer free phone consultations.
Have questions about raising capital?
Give us a call or text today at +1.801.787.9072. E-mail: team@sec.lawyer
You can also get my Free "Getting Started Package" that will help answer a lot of your basic questions and point you in the right direction. Go here: sec.lawyer to get it.
NOT TO BE CONSTRUED AS LEGAL, FINANCIAL, OR TAX ADVICE. I AM NOT YOUR LAWYER UNLESS A DULY EXECUTED ENGAGEMENT LETTER EXISTS BETWEEN US.
THANKS FOR WATCHING, LIKING, AND SUBSCRIBING!
(c) Mangum & Associates PC
Reg CF with investors limited to $10,000 per year eliminates millionaire investors who want to take over the entity if it becomes successful or they feel their law firm shold be able to suck the funds from the Liminted Partnership. Securities laws should restrick all sales from LPs to to any investment they own shares.
Thank you for this excellent yet simple to understand breakdown! I just scheduled a phone consultation with you.
Thank you very much
This is great! Thank you so much!
You're welcome, Jason. Thanks for the feedback.
Hey Darin. You briefly mentioned portals and I didnt see a video on your page. Do you have a few portals that you could recommend we look at?
Hi Darin, thanks so much for your videos! Would it be the same requirements for a quantitative fund?
SUPER helpful Darin, thank you!
Excellent. You are most welcome, Charles. If I can help you with anything specifically in this area, please feel free to contact me.
Great information, thank you for the video.
You are welcome. If I can help you with your particular PPM or offering, please feel free to contact me.
Great videos Darin, not sure how I just now found you. Question. Can you run more than one Reg CF Fund when you cap out the 1M limit? For Example, XYZ Fund I caps out, then you start XYZ Fund II to continue to bring in money?
If Fund #2 is essentially a carbon copy of Fund #1 the answer would be no as the 2 funds would be integrated and seen as 1 fund by the SEC per Rule 502 of the Securities Act. If the Biden administration doesn't continue to freeze federal regulations, then Regulation Crowdfunding's recent increase allowance to $5MM should go into effect sometime in early March 2021 timeframe . . . fingers crossed! :-)
How can a start up raise capital
Must have a PPM for crowdfunding? Kick Starter doesn't request one. Also, we have a PPM, but we have to amend it since we changed some services. We would like to use services like yours, but we took a nasty hit with this pandemic.
Hi Miguel. Regulation Crowdfunding requires an "offering statement" in connection with the filing of Form C. A properly-drafted offering statement serves the same purpose as a PPM (private placement memorandum) does under Regulation D. Making sure your offering statement (PPM) is properly drafted and reviewed by securities counsel is muy importante. :-)
Hi Darin,
I am planning to have my foreign friends invest in my fund that’s primarily invest in index funds , blue chip companies. What kind of license do I need?
My friends who’s going to invest are less than 99 people and unaccredited, is 3C1 or Reg D 506(b) okay? I am still not sure how many of my foreign friends are going to invest? Can they invest later on as the fund proof itself that’s it has good appreciation rate. Do I need to set up a LLC for running a fund? My foreign friends don’t have to pay capital gain, so I would want to take advantage for that.
Thank you in advance
Hey Brad. Thanks for your Q's -- too many to cover here. Let's chat: mangumlaw.setmore.com/
Are you available for hire to certify the legality of a regulation A+ filing? It is one of the requirements.
Yes sir. We'd be glad to help you with that. Please send details to darin@mangumlaw.net and let me know the best number to reach you. Also, thanks for your comment here on TH-cam! :-) Hopefully you find my content valuable.
Yes, we can help you with your Reg A+ filing, but this video discusses Regulation Crowdfunding and Rule 506(c) of Regulation D, which are separate exemptions altogether.
How are 3c1, 3c5, and 3c5s different than Reg D, Reg A, and Reg CF offerings?
The first "3c" references are to the Investment Company Act of 1940, as amended, which provides exemptions for private funds. The Reg D, etc., references are regulations under the Securities Act of 1933, as amended, which governs offerings of securities of any kind, whether you're a private fund or otherwise. There's some overlap with these regulations and exemptions, all of which need to be observed in order to stay in compliance. Does that help?
@@mangumlaw are there investment companies within the Investment Company Act that arent limited to raising money from only accredited investors or qualified purchasers like Reg D, Reg CF, or Reg A? A private investment company is a good example right?
@@Bamidele-ee8ch, any 3c (exempt) ICA company could utilize Regulation D Rule 506b, for example, to bring in up to 35 non-accredited investors. Do you want to set up a call to discuss your plans? If so, here's my calendar link: mangumlaw.setmore.com/
Question for you Sir,
Can a non-accredited investor raise capital from accredited investors?
If so, what is the process?
Hi Tony. The status of the one raising capital doesn't count. It's the status of the investor putting in the money that's important. The process always involves preparing the proper paperwork with the help of a securities lawyer pursuant to SEC rules. Does that help?
@@mangumlaw Yes it does. Thank you Sir.
I live in San Antonio, TX. Can you handle the paperwork in TX? If not, can you recommend someone?
@@Strongs_G3528 Yes sir. We practice nationwide. Please send your email to darin@mangumlaw.net or colby@mangumlaw.net and we can schedule a time to chat. Thank you!
If my investors are all foreign... is that ok?
Yes, non-US investors are typically brought in under Regulation S.
@@mangumlaw can we have a quick call... how can I message you?
@@agasalmans here's a link to my calendar: mangumlaw.setmore.com/
Can we be friends